There is an awful surprise hidden “between the lines” of the technical relation of the “Decreto Crescita” (GDP Development act) licensed in the last week by the Italian Government, enforced since the 20th October, and in progress to be converted in law rule (in Italy, urgent law acts, can be pronounced by the Government, as “Decreti”, without the parliament confirmation, and after be converted in law rules, as “Leggi” by the approvation of the parliament. If the parliament doesn’t makes this conversion, the “Decreto” ends its effects).The Clarifying of a regulation which risks to hit hard the many citizens that, unwillingly, are caught in the net of Equitalia (main tax recovery agency) and other tax recovery agencies. With the enforcement of this act, the tax recovery files can become even more expensive. In the “Decreto Crescita” is in fact cancelled the VAT exemption for the “tax recovery activity, made by agencies whose receive a profit for this function”.
In simplier words, it means that the profit earned by Equitalia and other tax recovery agencies, which is the 9% of the amount of the tax recovered, will now be also taxed with the 21% VAT.
As example, we can take a 1090 € tax recovery file issued against a citizen. The tax the public administration requests is 1000 €, while the other 90 € are the profit for Equitalia for the tax recovery activity. Until now this activity was not taxed. With the new “Decreto”, this 90 € fee will be taxed with the VAT (21%), entirely paid by the citizen, who will be forced to pay 18 € more.
The “technical relation” contains the calculation of the positive impact, for governments income:”On the basis of data provided by Equitalia, is resulting an amount of profits, till now without VAT, of around 600 Millions €, so after the new regulation, there will be a 80 Millions €
tax recovery, considering the negative effect of the decrease on citizen earnings and in the resulting taxes”.
In addition, the technical relation forecasts 20 more Millions € of incomes, from other local tax recovery agencies.
From the “tax on the fees” – which the economic newspaper “Italia Oggi” thinks it ca be the law application to the request, from EU Commission, to correct the not-EU complying VAT exemption on the tax recovery activity – the Government actually evaluates a “income recovery of about 100 Millions €, on year to year basis”.
Translation by Francesco Tedeschi
Original article from HuffingtonPost.it